In the Hong Kong stock market outlook, listed companies with Chinese backgrounds are divided into two categories, namely red chips and H-shares. What both have in common is that the main business of these companies is located in the domestic market. The biggest difference between them is that red-chip listed companies are generally registered in Hong Kong and are subject to Hong Kong laws, while H-share listed companies are registered in the mainland and are subject to domestic laws.

In the early days, most of the red chips were Chinese-funded companies set up in Hong Kong, and backdoor listings were achieved through the acquisition of small and medium-sized companies in the Hong Kong stock market, and then through business transformation and asset injection. Li Xuan patted his head and proposed that he was willing to counsel enterprises in the Special Administrative Region to list in Hong Kong and the market, but it was not easy to operate in practice.

For example, the Huaqiang Electronics Company he chose is actually a backbone enterprise under the Guangdong Provincial Electronic Industry United Company, and the management power is in the hands of the provincial government, and the SAR government cannot command it at all. Moreover, even if Huaqiang is willing to go public in Hong Kong, the accounting system in China is completely different from that in Hong Kong, and the mainland has not even promulgated the "Company Law" so far, so how to win the trust of Hong Kong investors is still a problem.

Therefore, the H-share listing plan is not feasible at all now, and the red-chip listing is more practical in comparison. Because the listed company is registered in Hong Kong, it will be subject to Hong Kong laws and rules, so that investors can at least feel at ease.

In fact, there are similar precedents in Hong Kong's capital market. For example, as early as 1984, Xinqiong Group, a joint venture between Bank of China and China Resources, became the first Chinese-funded listed company after acquiring the troubled Canny Electronics.

Of course. Since Xingqiong Group was originally registered in Hong Kong, it was actually just an ordinary commercial acquisition with a Chinese background. In contrast, enterprises registered in the Mainland. If you want to achieve listing in the Hong Kong market curve by acquiring a Hong Kong listed company, you also need to obtain the approval of the relevant domestic authorities.

However, the great man said that reform and opening up is to cross the river by feeling the stones, and we must have the courage to try. The SAR government even had the idea of introducing an independent currency, and even printed all the banknotes, but later due to changes in the economic situation at home and abroad. In the end, it didn't work.

Compared with these crazy reforms, the central government's approval of enterprises to go public in Hong Kong for financing is just a child! Not to mention the extreme shortage of foreign exchange in China at present. There is no reason why this method of borrowing money from Hong Kong shareholders to develop enterprises will be rejected.

"Xiao Wang, what are your next arrangements? Why don't you go to have a meal together later?" Li Huolin patted Wang Shi's shoulder and asked with a smile.

"Brother Li, let's wait until we return to the Special Administrative Region. Let go of your belly and rub it well! Prices in Hong Kong are too expensive. I can't help but eat here, I will calculate how much foreign exchange I spent, and calculate that no matter how fragrant the food is, it won't taste good in my mouth," Wang Shi shook his head and said with a wry smile.

Hong Kong's Asia Securities Company held a special counseling session on shareholding reform for enterprises in the Special Administrative Region (SAR). Because the venue of this meeting is located in Hong Kong, Asia Securities is responsible for food and accommodation. Therefore, regardless of whether they are willing to do so or not, the CEOs of various enterprises in the Special Administrative Region are very willing to visit.

Because after the meeting, we will at least have the opportunity to have a good walk in Hong Kong. Don't look at the deep sea SAR and Hong Kong are so close, but in the 80s. Even if these CEOs of state-owned enterprises want to visit Hong Kong, it is by no means an easy task.

The real theme of this conference. In fact, it is to invite domestic enterprises to list in Hong Kong. Although Wang Shi got an invitation, he also came over to open his eyes. But he actually knows very well that with the current capital of Hyundai Scientific Instruments, it is not qualified to be listed in Hong Kong at all.

As analyst Wei of Asia Securities said in his introduction, the most convenient way to list in Hong Kong is to acquire a small listed company. However, even small-cap stocks in the Hong Kong stock market usually have a total share capital of more than HK$100 million.

And Shekou accounting firm did an asset appraisal for Hyundai Scientific Instrument Company last year. The company's total assets are less than 15 million yuan, and it is impossible to complete the feat of swallowing an elephant.

"Brother Li, I heard that your Huaqiang Electronics has the idea of going public in Hong Kong, this is the first in the country!" Wang Shi complimented with a smile.

Yang Guangsheng, the former general manager of Huaqiang Group, was transferred to the Provincial Electronics Industry United Company as a member of the Party Committee two years ago, and Li Huolin, who was the deputy manager of Huaqiang Electronics Company at that time, succeeded smoothly. Huaqiang Electronics Co., Ltd. is definitely one of the most popular state-owned electronics factories in the Shenhai Special Economic Zone in recent years, which makes Li Huolin, the general manager, naturally have unlimited scenery.

You must know that the TV factory, a joint venture between the Wreath Shop Company and RCA Company, now produces 700,000 TVs per year. Of these, 400,000 units are used for export and 300,000 units are used for domestic sales. And because this joint venture factory is responsible for the OEM production of TVs for RCA in the United States, the TVs produced online are mid-to-high-end products for the domestic market.

In the electronics industry, the profits of mid-to-high-end products have always been much more lucrative than those of low-end products. The 300,000 TVs used by Huaqiang Company for domestic sales are no worse than imported ones in terms of quality. At this stage, under the condition that the demand for domestic television sets is strong, the profits created by these 300,000 TV sets for Huaqiang Company are at least equal to the profits of other TV factories producing 5 or 600,000 black and white TV sets or small-size color TVs.

The remaining 400,000 TVs manufactured by RCA can bring a huge amount of foreign exchange to Huaqiang. The reason why Wang Shi knew Li Huolin was precisely because of Hyundai Scientific Instrument Company, which had already transferred foreign exchange from Huaqiang Electronics Company several times before.

For most import trading companies in Shenzhen, the level of exchange capacity completely determines the size of the company's business scale. For example, Hyundai Scientific Instruments usually imports various electronic products from Hong Kong according to the needs of the domestic market. However, the currencies paid by domestic merchants are RMB, while imported products need to consume foreign exchange.

At present, the country's foreign exchange reserves are extremely scarce, and it is impossible for ordinary companies to apply for large sums of foreign exchange from the State Administration of Foreign Exchange. Therefore, the only workaround for everyone is to transfer from other enterprises with foreign exchange surpluses. Wang Shi is for the foreign exchange thing. I have been to Li Huolin many times before, and the two have become acquainted with each other as soon as they come and go.

"It can't be said that our Huaqiang company has this kind of idea, but it is actually on the side of the Eastern Group, which is a joint venture with us. I will not hide from Xiao Wang that the business of the joint venture factory is so prosperous now, and it is completely dependent on the support of the Eastern Group. So we really can't refuse their proposal!" Li Huolin showed a somewhat helpless expression.

"Brother Li's work is not easy! But if you can come to Hong Kong to issue stocks, it will definitely be a great thing, and the money collected here is all foreign exchange!" Wang Shi followed the other party's meaning and sighed.

There have been rumors in Deep Sea City. The reason why Yang Guangsheng, the former general manager of Li Huolin, was secretly demoted by Mingsheng and transferred to the head office of the superior to become a member of the party committee without any real power. It is said that it is because of the dirty relationship with the foreign side.

"Since the leader has assigned me to this position, even if the work is not good, I must resolutely complete the task!" Li Huolin said with some reserve.

"Haha, it's still Brother Li's high style!" Wang Shi said. In fact, I was quite unimpressed.

The reputation of the Eastern Group in the deep sea city is not only not bad. It's actually very easy to work with them, just follow the rules of the game that everyone has agreed on in advance. Only a person like Yang Guangsheng, who thinks he is an old qualification, will be hit on the head and bleed.

"Since Xiao Wang, you said that you will go back to the deep sea and reunite, then I will invite you to dinner in a few days! I still have to go and ask Analyst Wei a few questions, so I will talk to you here for the time being!" Li Huolin saw that Ms. Wei Min, who was teaching everyone just now, was not far behind him, so he waved his hand to Wang Shi and said.

After Li Huolin finished speaking, he stopped, and then put on a warm smile. Waiting for the back of Ms. Wei to come over. Wei Min is a senior analyst at Asia Securities, and this time he is in charge of the CEOs of the companies from the mainland. Explain the various situations of Hong Kong's capital market.

Don't look at Li Huolin's appearance that he didn't care much about the listing when he communicated with Wang Shi just now, but his heart was actually very hot. Before he came to Hong Kong, Weng Boming, the deputy foreign manager of the joint venture television factory, had inadvertently mentioned to him that if the joint venture company could be listed in Hong Kong, the company's management would definitely pay wages according to Hong Kong's salary standards.

Don't look at the benefits of Huaqiang Electronics Company are very good, but Li Huolin, the general manager, actually receives a salary according to his rank. No matter how much profit Huaqiang Electronics makes, it also belongs to the state, and Li Huolin's salary is not much higher than that of the CEOs of other state-owned companies. And Li Huolin's courage is relatively small, and he does not dare to do such illegal things as corruption, corruption and bribery. At most, he eats and drinks and rubs a little bit of the company's oil.

According to the relevant regulations of the state, the joint venture shall formulate a salary system for Chinese and foreign managers in accordance with the principle of equal pay for equal work. However, the foreign personnel get a real salary, and although the Chinese personnel are nominally highly paid, in fact, what they actually get is not the same thing at all!

So don't look at the income on Weng Boming's salary slip, it is not as high as Li Huolin, but in fact, Li Huolin's salary is less than one-tenth of that of the other party. What's more, in addition to the salary offered by the joint venture factory, Weng Boming can also receive a generous subsidy through the Oriental Group.

According to Weng Boming, the general manager of a listed company in Hong Kong has an annual income of several hundred thousand Hong Kong dollars! Li Huolin was completely moved after hearing this figure, and if Huaqiang Electronics Company could really get such a high salary if he could really get such a high salary, then he would naturally have to do his best!

"Ms. Wei, you just said that by acquiring a listed company in Hong Kong and then injecting the assets of a domestic company into the listed company, you can move the registered place of the parent company to Hong Kong! So does the remuneration system of the new company after listing also refer to Hong Kong's standards?" The first question that Li Huolin asked to this Wei analyst was that it was related to his own interests.

"This should be analyzed on a case-by-case basis, for example, Mr. Li's Huaqiang RCA company achieved a curve listing through the acquisition of a Hong Kong listed company. After the assets of Huaqiang RCA were injected into the listed company, it became a wholly-owned subsidiary of the newly listed company.

But it is still a mainland enterprise, so all positions in Huaqiang RCA are still subject to the mainland's salary system. And if Mr. Li plays a major position in a Hong Kong listed company as a major shareholder after the completion of the acquisition, then the Hong Kong company will definitely be subject to Hong Kong's remuneration system!" Wei Min smiled at Li Huolin and explained very methodically.

Li Huolin immediately understood what the other party meant, and his heart fell back into his stomach. According to the information he inquired before, many Chinese-funded companies in Hong Kong are paying salaries according to Hong Kong's salary standards, rather than just a flash in the pan like domestic joint ventures. After Li Huolin got the results he wanted, he was even more motivated to go public!

In fact, the reason why the Oriental Group wants to promote domestic enterprises, especially large state-owned enterprises like Huaqiang Electronics, to list in Hong Kong is also out of its own interests. Because in the Sino-foreign joint venture model, the foreign team's control over the joint venture factory is actually very limited. Especially like the Eastern Bloc, they don't like to use technological monopoly to deliberately stick the neck of their partners.

When the Oriental Group cooperates with domestic enterprises, the most troublesome problem encountered is that the governance of domestic enterprises is extremely non-standardized, and it is usually governed by people rather than by regulations. Therefore, it is undoubtedly the best choice for the Oriental Group to let domestic enterprises go public in Hong Kong and use Hong Kong's enterprise system to restrain them.

And if it is in the mainland, the domestic management has a home field advantage. But after coming to Hong Kong to list, the situation is just the opposite, with the influence of the Oriental Group in the Hong Kong capital market now, there are various means to counteract!

Not to mention how Li Huolin will take the initiative to promote the listing of Huaqiang Electronics in Hong Kong after returning to Shenhai City. After Wang Shi participated in this counseling meeting, he also felt very rewarded. In fact, as early as a year ago, he began to promote the joint-stock reform of Hyundai Scientific Instrument Company.

Originally, the actions of Hyundai Scientific Instrument Company have been strongly supported by the leading group for the reform of the system of Shenhai City. However, due to the obstruction of the parent company, the Tefa Group, this joint-stock reform work could only be interrupted later.

Before Wang Shi came to Hong Kong, he heard a small piece of news, and it was said that Secretary Li of the municipal party committee had a very tough attitude towards the reform of the joint-stock system. He has personally made appointments with the top leaders of a number of municipal state-owned enterprises, including the Special Development Company, to do ideological work.

In this way, the joint-stock reform plan of Hyundai Scientific Instruments may soon be approved by the special development group. Therefore, many of the contents that Wang Shi has harvested today have great reference significance for the company's next share reform work.

Of course, the means of financing in the capital market are by no means only the way of listing, and other methods such as issuing bonds are also good choices. After listening to today's counseling meeting, Wang Shi was also a little nervous. For a company like Hyundai Scientific Instrument Company that operates import trade, as long as there is enough foreign exchange, it is not very difficult to make money.

You must know that the gross profit of a company is usually more than 30 percent, and as long as you can borrow foreign exchange, it is not a problem to pay that bit of interest! Of course, Wang Shi is not without worries, and it is not an easy thing to issue foreign debts in the first place. If you prepare all kinds of materials and spend a lot of money, but in the end the bamboo basket is empty, then the loss will be big!

In addition to the risk of failure in bond issuance, the risk of RMB depreciation also has to be considered in advance. For example, the People's Bank of China suddenly announced that the exchange rate of RMB against the US dollar was adjusted from 2.8 to 3.3, and Hyundai Scientific Instruments lost more than 4 million yuan in the exchange rate.

If, during the period of the company's borrowing, the People's Bank of China lowers the exchange rate again, it will definitely be a major blow to the Hyundai Scientific Instrument Company! However, these are all things that can be considered slowly in the future, and the main purpose of Wang Shi's visit to Hong Kong this time is naturally not to listen to the counseling meeting on the joint-stock system reform, but to have another important task! )